On 7/30/18 the IRS and Department of the Treasury announced their intent to issue regulations on three recent tax law changes affecting popular 529 education savings plans.

Notice 2018-58, addresses a change included in the 2015 Protecting Americans From Tax Hikes (PATH) Act, and two changes included in the 2017 Tax Cuts and Jobs Act (TCJA). Taxpayers, beneficiaries, and administrators of 529 and Achieving a Better Life Experience (ABLE) programs can rely on the rules described in this notice until the Treasury Department and IRS issue regulations clarifying these three changes.

Tuition refunds

The PATH Act change added a special rule for a beneficiary of a 529 plan, usually a student, who receives a refund of tuition or other qualified education expenses. This can occur when a student drops a class mid-semester. If the beneficiary recontributes the refund to any of his or her 529 plans within 60 days, the refund is tax-free.

The Treasury Department and the IRS intend to issue future regulations simplifying the tax treatment of these transactions. Re-contributions would not count against the plan’s contribution limit.

K-12 education

One of the TCJA changes allows distributions from 529 plans to be used to pay up to a total of $10,000 of tuition per beneficiary (regardless of the number of contributing plans) each year at an elementary or secondary (k-12) public, private or religious school of the beneficiary’s choosing.

Rollovers to an ABLE account

The second TCJA change allows funds to be rolled over from a designated beneficiary’s 529 plan to an ABLE account for the same beneficiary or a family member. ABLE accounts are tax-favored accounts for certain people who become disabled before age 26, designed to enable these people and their families to save and pay for disability-related expenses.

The regulations would provide that rollovers from 529 plans, together with any contributions made to the designated beneficiary’s ABLE account (other than certain permitted contributions of the designated beneficiary’s compensation) cannot exceed the annual ABLE contribution limit — $15,000 for 2018. For more information about other TCJA provisions, visit IRS.gov/taxreform.

]]>https://considerchapter13.org/2018/08/05/irs-offers-guidance-on-recent-529-education-savings-plan-changes/feed/0Critical Case Commenthttps://considerchapter13.org/2018/07/29/critical-case-comment-92/
https://considerchapter13.org/2018/07/29/critical-case-comment-92/#commentsSun, 29 Jul 2018 14:18:10 +0000https://considerchapter13.org/?p=25483 . . . → Read More: Critical Case Comment]]>Please Login to view this Content. (Not a member? Join Today!)]]>https://considerchapter13.org/2018/07/29/critical-case-comment-92/feed/0Who Gets Paid When? A Short Primer on the Order of Distribution in the Era of National and Local Planshttps://considerchapter13.org/2018/07/22/who-gets-paid-when-a-short-primer-on-the-order-of-distribution-in-the-era-of-national-and-local-plans/
https://considerchapter13.org/2018/07/22/who-gets-paid-when-a-short-primer-on-the-order-of-distribution-in-the-era-of-national-and-local-plans/#commentsSun, 22 Jul 2018 14:02:49 +0000https://considerchapter13.org/?p=25434 . . . → Read More: Who Gets Paid When? A Short Primer on the Order of Distribution in the Era of National and Local Plans]]>Please Login to view this Content. (Not a member? Join Today!)]]>https://considerchapter13.org/2018/07/22/who-gets-paid-when-a-short-primer-on-the-order-of-distribution-in-the-era-of-national-and-local-plans/feed/0Rule 3002.1 and the Tangled Web of HOA Assessmentshttps://considerchapter13.org/2018/07/22/rule-3002-1-and-the-tangled-web-of-hoa-assessments/
https://considerchapter13.org/2018/07/22/rule-3002-1-and-the-tangled-web-of-hoa-assessments/#commentsSun, 22 Jul 2018 14:02:25 +0000https://considerchapter13.org/?p=25431 . . . → Read More: Rule 3002.1 and the Tangled Web of HOA Assessments]]>Please Login to view this Content. (Not a member? Join Today!)]]>https://considerchapter13.org/2018/07/22/rule-3002-1-and-the-tangled-web-of-hoa-assessments/feed/0Here’s How the IRS Contacts Taxpayershttps://considerchapter13.org/2018/07/22/heres-how-the-irs-contacts-taxpayers/
https://considerchapter13.org/2018/07/22/heres-how-the-irs-contacts-taxpayers/#commentsSun, 22 Jul 2018 13:59:51 +0000https://considerchapter13.org/?p=25423Everyone should know how the IRS contacts taxpayers. This will help people avoid becoming a victim of scammers who pretend to be from the IRS with a goal of stealing personal information.

Here are some facts about how the IRS communicates with taxpayers:

The IRS doesn’t normally initiate contact with taxpayers by email. . . . → Read More: Here’s How the IRS Contacts Taxpayers]]>Everyone should know how the IRS contacts taxpayers. This will help people avoid becoming a victim of scammers who pretend to be from the IRS with a goal of stealing personal information.

Here are some facts about how the IRS communicates with taxpayers:

The IRS doesn’t normally initiate contact with taxpayers by email.

The agency does not send text messages or contact people through social media.

When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service. Fraudsters will send fake documents through the mail, and in some cases will claim they already notified a taxpayer by U.S. mail.

Depending on the situation, IRS employees may first call or visit with a taxpayer. In some instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always.

IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit.

Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice.

IRS revenue officers and agents routinely make unannounced visits to a taxpayer’s home or place of business to discuss taxes owed, delinquent tax returns or a business falling behind on payroll tax deposits. IRS revenue officers will request payment of taxes owed by the taxpayer. However, taxpayers should remember that payment will never be requested to a source other than the U.S. Treasury.

When visited by someone from the IRS, the taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.

]]>https://considerchapter13.org/2018/07/22/heres-how-the-irs-contacts-taxpayers/feed/0Bureau of Consumer Financial Protection Announces Director for Office of Innovationhttps://considerchapter13.org/2018/07/22/bureau-of-consumer-financial-protection-announces-director-for-office-of-innovation/
https://considerchapter13.org/2018/07/22/bureau-of-consumer-financial-protection-announces-director-for-office-of-innovation/#commentsSun, 22 Jul 2018 13:57:38 +0000https://considerchapter13.org/?p=25420Bureau Acting Director Mick Mulvaney 7/18/18 announced he has selected Paul Watkins to lead the Bureau’s new Office of Innovation.

Bureau Acting Director Mick Mulvaney 7/18/18 announced he has selected Paul Watkins to lead the Bureau’s new Office of Innovation.

“I am delighted that Paul Watkins is bringing his deep expertise, track record of protecting consumers, and commitment to innovation to the Bureau,” said Acting Director Mulvaney. “I am confident that, under his leadership, the Office of Innovation will make significant progress in creating an environment where companies can advance new products and services without being unduly restricted by red tape that belongs in the 20th century.”

Acting Director Mulvaney recently created the Office of Innovation to focus on encouraging consumer-friendly innovation, which is now a key priority for the Bureau. The work that was being done under Project Catalyst will be transitioned to this new office. The Bureau intends to fulfill its statutory mandate to promote competition, innovation, and consumer access within financial services. To achieve this goal, the new office will focus on creating policies to facilitate innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations.

Watkins comes to the Bureau from the Arizona Office of the Attorney General, where he was in charge of the office’s fintech initiatives. He managed the FinTech Regulatory Sandbox, the first state fintech sandbox in the country, which allows a company limited access to the marketplace in exchange for relaxing some regulations. Watkins was also the Chief Counsel for the Civil Litigation Division. In that role, he managed the state’s litigation in areas such as consumer fraud, antitrust, and civil rights. Previously, Watkins practiced at Covington & Burling LLP in San Francisco and Simpson, Thacher & Bartlett LLP in Palo Alto, Calif. He is a graduate of Hillsdale College and Harvard Law School, and a former clerk for Judge Dennis W. Shedd on the United States Court of Appeals for the Fourth Circuit.